Article preview from IN VIVO July 14, 2009
Pharmas continue to diversify into lower margin businesses because CEOs and boards are betting on different requirements from a new system of health care delivery. They also figure their jobs will be safer. The choices: Is the likeliest avenue to growth through successful R&D, or through positioning appropriate for future health care delivery and payment systems? Read on...
Article preview from IN VIVO July 14, 2009
Pharma strategies are increasingly determined by choice of uncertainties: is the likeliest avenue to growth through successful R&D or through positioning appropriately for future health care delivery and payment systems?
Bristol-Myers and Amgen have chosen the former—both because each is too small to diversify and because each believes it has a reasonable track record in innovation.
Novartis and most other large pharmas want to take both roads at once—and are either dramatically expanding to enable product bundling or to give themselves enough time to prepare for what the health care system demands.
For the first group, failure means low-value acquisition or corporate dismembering; for the second, failure won't be obvious for several years and, even so, probably won't mean the disappearance of the company—or the firing of senior management.
Read the rest of this 5166-word article now. Purchase it as a PDF.
Pharma strategies are increasingly determined by choice of uncertainties: is the likeliest avenue to growth through successful R&D or through positioning appropriately for future health care delivery and payment systems?
Bristol-Myers and Amgen have chosen the former—both because each is too small to diversify and because each believes it has a reasonable track record in innovation.
Novartis and most other large pharmas want to take both roads at once—and are either dramatically expanding to enable product bundling or to give themselves enough time to prepare for what the health care system demands.
For the first group, failure means low-value acquisition or corporate dismembering; for the second, failure won't be obvious for several years and, even so, probably won't mean the disappearance of the company—or the firing of senior management.
Read the rest of this 5166-word article now. Purchase it as a PDF.
